Chapters 15-18
These risk control techniques are designed to limit the scope for loss and reduce any undesirable outcomes that have been realized
What are corrective?
The primary concern of this organizational management level is to perform work according to laid-down procedures and not to deviate
What is the operational level?
This represents permanent structures that if removed would alter the functioning of the property
What is real property?
The ISO Guide 73 defines this as the amount and type of risk that an organization is willing to pursue or retain
What is risk appetite?
When risk management procedures and rules are established in writing, these are created
What are risk protocols?
These risk control techniques are designed to limit the possibility of an undesirable outcome being realized
Good corporate social responsibility standards can enhance __________ and build stakeholder __________
What are reputation and value?
This is the main cause of loss associated with IT systems
What is theft of computers and other hardware?
When a manager is newly appointed or has been given new or additional responsibilities, your organization should undertake this
What is risk training?
This may appear to be a relatively straightforward issue, but there are often complexities associated with the potential for changes to regulations
What is compliance?
Name four of the six C's of insurance
What are:
1. Cost
2. Coverage
3. Capacity
4. Capabilities
5. Claims
6. Compliance
This sets out lines of communication for reporting on risk management issues and events
What is risk architecture?
A risk aware culture is achieved by LILAC, which is an acronym for this
What is leadership, involvement, learning, accountability and communication?
Committee and meeting participation skills, networking skills across organizational silos, and strategic thinking skills and creativity skills are all examples of this
What are risk management people (soft) skills?
Developing strategy, designing architecture, and improving controls are all examples of this
What are risk management technical (hard) skills?
Name three of the five E's of opportunity management and what they provide
What are:
1. Exist in mature/declining markets
2. Explore entrepreneurial opportunities
3. Expand depending on risk appetite and capacity
4. Exit if risk appetite is exceeded
5. Exploit opportunity until competitors arrive
Name the five steps in the dynamic business model in order
What are:
1. Decide the strategy
2. Review of operations
3. Identify tactics
4. Identifying events that could materialize
5. Reporting the results
Name in order the three lines of defense from the Three Lines of Defense Model
What are:
1. Management controls
2. Risk management
3. Internal audit
Name three of the five risk appetite philosophies
What are:
1. Open
2. Flexible
3. Cautious
4. Minimalist
5. Averse
Note - Know the definition of each philosophy associated with each risk appetite!
These are the dominant responses to each of the four hazard risk zones listed below:
1. Comfort zone
2. Concerned zone
3. Cautious zone
4. Critical zone
What are:
1. tolerate
2. transfer
3. treat
4. terminate
Name each of the five requirements for a contract in order
What are:
1. There must be an offer and an acceptance
2. There must be consideration
3. The parties to the contract must be competent
4. Its purpose must be legal
5. The contract must be in legal form